Govt to appoint acting RBZ governor

Business Reporters
WITH the term of Reserve Bank governor Dr Gideon Gono due to expire this month, Government is set to appoint an acting governor while the search for his successor continues. Senior Government officials said while the Government was yet to come up with a suitable candidate, an acting governor would be appointed as it may take time to amend the Reserve Bank of Zimbabwe Act to provide for the extension of Dr Gono’s term.

Former RBZ governor Dr Leonard Tsumba’s term expired on June 30, 2003 and Charles Chikaura was appointed as acting governor for six months until Dr Gono took over.

Dr Gono was first appointed the central
bank governor in November 2003 and was re-appointed in November 2008 for another five-year term.

Earlier, indications were that his term would be extended by another year.

“In terms of the Reserve Bank of Zimbabwe Act, it would not have been possible to have his term extended,” said a Harare-based lawyer.
Dr Gono had recommended one of his deputies, an official said.

Over the past few months, several names have been linked to the hot seat. These included CBZ Holdings chief executive Dr John Mangudya, former CBZ Holdings chief executive Mr Nyasha Makuvise, African Development Bank chief economist Mthuli Ncube and head of debt and aid management in the Ministry of Finance Mr Andrew Bvumbe.

Dr Gono took over the hot seat at the RBZ when the economy was going into a slide. He came up with a number of policies, though widely criticised, in a bid to keep the country’s economy afloat. During his first term, the economy was going through its worst spell.

The economy experienced severe cash and fuel shortages, the highest inflation in the world – at 231 million percent at the last official count before dollarisation in June 2009 – corruption, high unemployment and the collapse of social sectors such as health and education.